Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
On-chain data indicates that the total value of Ethereum withdrawn from staking has exceeded $1 billion within the last 24 hours, further demonstrating the network’s capability to execute live network-wide updates seamlessly.
ETH withdrawals in action
Since the implementation of the Shanghai and Capella upgrades, a cumulative total of $1.7 billion has been withdrawn. However, as the second round of withdrawals commenced, the amount of Ethereum taken out increased. The first round required 4.14 days to finalize as validators in the queue were processed.
Currently, 18,442,455 ETH is staked, valued at $38.5 billion as of the time of reporting. Consequently,
staked ETH constitutes 15.32% of the overall supply, with 33% staked through Lido.
With the opening of withdrawals, investors have been reclaiming their initial investments along with the accrued rewards. Staked Ethereum generates interest over time, and when a validator accumulates more than 32 ETH in rewards, the surplus does not contribute to their principal. Instead, it is automatically withdrawn as a reward payment every few days.
The chart below illustrates the significant disparity between deposits and withdrawals (both rewards and principal funds) since the upgrade.
Source: Dune
Related Posts
Rewards
Staking rewards initially started at approximately 15% and were set on a predetermined declining curve based on the number of validator participants until the Merge, when the network assumed control. The current validator reward stands at 4.33%, which includes consensus rewards and transaction fees. These rewards peaked at around 5.2% in the days preceding the upgrade but have since reverted to a downward trend. Overall staking rewards have decreased by 1.4% since the Merge last September, when they rose from 4.3% to 5.8%.
Alongside the changes in deposits, withdrawals, and rewards, the average value of Ethereum staked with validators has diminished since the initiation of withdrawals. Consequently, 54.3% of stakers are now in profit with ETH priced around $2,000.
Source: Dune
Bullish momentum
In conclusion, both the Shanghai and Capella upgrades seem to have been successful, as the network is handling new deposits, principal withdrawals, and reward payments without any major complications. Moreover, these operations are being conducted with billions of dollars worth of Ethereum on a daily basis.
While blockchain networks can still be regarded as being in a beta phase in various respects, Ethereum’s capacity to manage such substantial live network upgrades without issues is quite promising for the evolving industry.
The post $1B staked ETH withdrawn in 24hrs as round 2 begins appeared first on CryptoSlate.
